BILL NUMBER: AB 2866	CHAPTERED  07/10/00

	CHAPTER   127
	FILED WITH SECRETARY OF STATE   JULY 10, 2000
	PASSED THE ASSEMBLY   JUNE 16, 2000
	PASSED THE SENATE   JUNE 15, 2000
	AMENDED IN SENATE   JUNE 15, 2000
	AMENDED IN ASSEMBLY   MAY 25, 2000

INTRODUCED BY   Assembly Member Migden
   (Coauthors:  Assembly Members Alquist, Aroner, Cedillo, Gallegos,
Hertzberg, Honda, Longville, Reyes, Romero, and Wildman)

                        MARCH 6, 2000

   An act to amend Sections 215, 631, 1730, 1734, 1735, and 1742 of
the Code of Civil Procedure, to amend Section 14038 of the
Corporations Code, to amend Section 17070.70 of the Education Code,
to amend Sections 12012.85, 12439, 16429.30, and 53661 of, to amend
and add Section 15202 to, to add Section 19134 to, to add Chapter 1.4
(commencing with Section 15363.70) to Part 6.7 of Division 3 of
Title 2 of, to add and repeal Section 13968.7 of, and to repeal
Sections 16429.34, 16429.36, 16429.38, 16429.40, and 16429.49 of, the
Government Code, to amend Sections 51451 and 51452 of the Health and
Safety Code, to amend Section 2675.5 of, and to add Sections 3099.5
and 7929.5 to, the Labor Code, to add Section 531 to the Military and
Veterans Code, to add Sections 3006 and 5024 to the Penal Code, to
add Section 10299 to the Public Contract Code, to add Section 355.1
to the Public Utilities Code, and to add Section 140.3 to the Streets
and Highways Code,  relating to state government, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.

      (Approved by Governor July 8, 2000.  Filed with
Secretary of State July 10, 2000.)

   I am signing Assembly Bill No. 2866; however, I am concerned about
several provisions contained in this measure.
   First, I am deleting Section 10 of this measure, because it
contains an appropriation.  This section would authorize the Board of
Control to enter into an interagency agreement with the University
of California, San Francisco, to establish a victims of crime
recovery center, as a pilot project until June 30, 2004, at San
Francisco General Hospital; and to establish supplemental mental
health rates for eligible victims.  By providing for new and expanded
uses of a continuously appropriated fund, Section 10 of this bill
would make an appropriation.
   Consistent with my strong support for victims' rights, I sustained
a total of $525,000 in the 2000 Budget Act for one-time start-up
costs for the victims of crime recovery center.  However, I am
concerned Section 10 would fund services that are normally not
reimbursed and at rates that are twice the current level.  The
enhanced mental health reimbursement rates, funded by the Restitution
Fund, which is continuously appropriated to the Board of Control,
could set a potentially costly precedent that could ultimately have a
negative impact on the Restitution Fund and the ability to fund
services to victims on a statewide basis.
   I am also deleting Section 36 to conform with this action.
   Second, I am concerned about provisions included in this measure
that would require an assessment of rail transportation in California
and recommendations for projects.  While I do not object to
assessing the potential for greater connectivity of the passenger
rail system with other passenger travel modes, improved public
safety, and mitigating congestion on rail corridors providing
passenger service, I am concerned with the bill's implication that
the State should propose projects to support private freight rail
capital needs.
   While I recognize that movement of goods has a strong tie to the
state's ability to support commerce, I also recognize that private,
for-profit companies that operate freight railroads are substantially
capable of funding their own capital and operating needs.  I am
directing the Department of Transportation to limit its rail
recommendations to those which are the proper subject of state
funding, prioritizing them in context of the state's other pressing
transportation needs.  Furthermore, I would support legislation
directing the University of California to conduct the private rail
assessment.
   In contrast to the sweeping request for project recommendations in
this bill, the Traffic Congestion Relief Plan I proposed contains
funding for priority freight rail-related capital projects which will
relieve congestion on highways and streets.  Funds proposed for the
publicly-owned North Coast Rail Authority will restore service
thereby reducing the burden on Route 101. Funds proposed for an
eastern extension of the Alameda Corridor project are based on the
expectation that the freight rail company that participates in the
Alameda Corridor project will contribute substantial funding,
commensurate with the benefits it will obtain, while government
funding is used substantially to reduce the conflicts between rail
operations and street and highway traffic.
                                                 GRAY DAVIS, Governor


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2866, Migden.   State government.
   (1) Existing law establishes a system of state funding for trial
courts.  Existing law establishes the Trial Court Trust Fund for the
purpose of funding trial court operations.  For purposes of those
provisions, court operations are defined to include, among other
things, juror expenses of per diem fees and mileage.  Existing law
also specifies the fees and travel reimbursement to be paid to jurors
in civil and criminal cases.
   This bill would increase the daily fees for jurors beginning July
1, 2000, as specified.  Funding for these purposes would be made
pursuant to an appropriation of funds in the annual Budget Act.  The
bill would also set forth the findings and declarations of the
Legislature.
   (2) Existing law specifies that a trial by jury may be waived in
civil cases by failure to deposit advance jury fees, as specified,
and limits the amount of those fees to not more than the average
mileage and fees of 20 jurors for one day.
   This bill would instead limit advance jury fees required to be
deposited pursuant to this provision to a total of $150.
   (3) Existing law establishes pilot programs to assess the benefits
of early mediation of civil cases in 4 superior courts, as
specified.
   This bill would, in addition, require the Judicial Council to
establish a pilot program in the Los Angeles Superior Court in 10
departments handling civil cases.  These departments would have the
authority to make mandatory referrals to mediation, as specified.
The court would be responsible for paying the mediator's fees, to the
extent specified.  The bill would expand the nature of a report to
be prepared by the Judicial Council with respect to the pilot
programs.  The bill would also make related changes.
   The bill would impose a state-mandated local program by imposing a
new program on the court.
   (4) Existing law provides for the California Small Business
Financial Development Loan Guarantee Account and authorizes funds
from that account to be paid by the treasurer to a small business
development corporation loan guarantee fund.  Under existing law,
those funds may then be transferred by the California Office of Small
Business Development to corporate trust accounts, based on its
evaluation of specified performance-based criteria of that
corporation.
   This bill would specify that these performance-based criteria are
not applicable to a corporation that has been in existence for 5
years or less and would require the office to specify by regulation
the basis for transferring funds from the small business development
corporation loan guarantee fund to those corporations.
   (5) Existing law, the Leroy F. Greene School Facilities Act of
1998 (Greene Act), makes funding available to school districts for,
among other things, schoolsite acquisition, construction, and
modernization.  The Greene Act authorizes the State Allocation Board
to determine the eligibility of school districts to receive
apportionments, and to apportion funds to eligible school districts
under the act.
   The Greene Act requires that title to all property acquired,
constructed, or improved, with funds made available from the act, to
be held by the school district to which the board grants the funds.
   This bill would authorize the board to provide funding, pursuant
to the Greene Act, for projects upon property that is leased to a
school district as long as the school district's project received
approval from the board prior to November 4, 1998.
   (6) Existing law ratifies specified tribal-state gaming compacts.
Existing law also establishes in the State Treasury the Indian
Gaming Special Distribution Fund for the receipt and deposit of
gaming device license fee moneys received by the state from Indian
tribes pursuant to the terms of tribal-state gaming compacts, which
shall be available for appropriation by the Legislature for specified
regulatory and other purposes.
   This bill would include within the express purposes of the Indian
Gaming Special Distribution Fund disbursements for the purpose of
implementing the terms of tribal labor relations ordinances
promulgated in accordance with the terms of ratified tribal-state
gaming compacts.
   (7) Existing law requires the Controller to abolish, effective
July 1, any state position that was vacant continuously during the
period between October 1 and June 30 of the preceding fiscal year.
Existing law also requires that positions which were vacant for the
last 9 months of a fiscal year because of a hiring freeze in effect
during part of all of the 9-month period be abolished unless the
Director of Finance is notified of the need for, and approves,
continuing these positions.
   This bill, instead, would require the Controller beginning July 1,
2001, and on each July 1 thereafter, to abolish any state position
that was vacant continuously for 6 consecutive monthly pay periods
during the period between July 1 and June 30 of the preceding fiscal
year.  The bill would require positions that were continuously vacant
for 6 consecutive monthly pay periods during a fiscal year because
of a hiring freeze in effect during part or all of that period to be
abolished unless the director is notified of the need for, and
approves of, the continuance of the positions.  The bill would
authorize a state agency to request positions that have been
abolished under specified circumstances be reestablished.
   (8) Under existing law, a victim of a crime may file an
application with the State Board of Control for financial, medical,
counseling, and other assistance pursuant to specified procedures.
   This bill would authorize the board until June 30, 2004, to enter
into an interagency agreement with the University of California, San
Francisco to establish a victims of crime recovery center at the San
Francisco General Hospital to demonstrate the effectiveness of
providing comprehensive and integrated services to victims of crime.

   (9) Under existing law, a county that is responsible for the cost
of a trial or trials or any hearing of a person for the offense of
homicide may apply to the Controller for reimbursement of the costs
incurred by a county in excess of the amount of money derived by the
county from a tax of 0.0125 of 1% of the full value of property
assessed for purposes of taxation within the county.
   This bill would delay, until January 1, 2005, the use of this
formula for determining state reimbursement of counties for homicide
trials and hearings.  The bill instead would provide for that
reimbursement until January 1, 2005, pursuant to several different
specified formulas that apply depending upon the size of the
population of a county.
   (10) Existing law provides for various programs within the Trade
and Commerce Agency for the development and promotion of the film
industry in the state.
   This bill would enact the Film California First Program, to
authorize the agency to pay and reimburse specified film costs
incurred by a public agency, as defined, up to $300,000 for any one
film.  It would create the Film California First Fund in the State
Treasury for purposes of the program.  It would declare the intent of
the Legislature that funding for the program be provided from the
General Fund through the annual Budget Act in the amount of
$15,000,000 per year for 3 years, commencing with the 2000-01 fiscal
year.
   (11) The Administrative Procedure Act sets forth certain
procedures for the adoption, amendment, or repeal of administrative
regulations, including emergency regulations.
   This bill would exempt procedures and guidelines promulgated to
clarify and make specific the Film California First Program
established pursuant to the bill, and any other film assistance
program within the Trade and Commerce Agency, from the requirements
of the act for 36 months after the effective date of the bill.  It
would authorize the agency to adopt emergency regulations concerning
the implementation of the program in accordance with the act
following the 36-month exemption period.
   (12) Under existing law, there is the California Unitary Fund in
the State Treasury and a Future Infrastructure State Targeted Account
and a Local Project Account for Non-Transient Spending in the
California Unitary Fund.  These funds are required to be used
exclusively for infrastructure financing and economic development.
Under existing law, the moneys in the California Unitary Fund remain
in the fund until appropriated by the Legislature, and 20% of the
money deposited in the Future Infrastructure State Targeted Account
is required to be available for expenditure only for support of the
California Export Finance Program Law, the California Export
Promotion and Policy Program, and the Foreign Market Development
Export Incentive Program for California Agriculture Act.  Existing
law requires proposed appropriations from the fund to be summarized
in the Governor's Budget for each fiscal year bearing the caption
"California Unitary Infrastructure and Economic Development Program"
and contain a separate description of each program for which an
appropriation is made.  Under existing law, the Secretary of the
Business, Transportation and Housing Agency is responsible for
annually recommending to the Governor, for inclusion in the Budget
Bill, which programs shall be supported by the California Unitary
Fund.
   This bill would repeal these provisions, abolish the California
Unitary Fund, and transfer assets and liabilities of the fund to the
General Fund.  This bill would also require that on and after January
1, 2001, all money that would have been deposited in the Unitary
Fund be instead deposited in the General Fund.
   (13) The California Constitution establishes the civil service
system, which includes every officer and employee of the state,
subject to specified exemptions.  Statutory law permits the state to
enter into contracts for personal services to achieve cost savings
when specified requirements are met.
   This bill would require a state agency that enters into a personal
services contract for certain types of workers to include provisions
for employee benefits that are valued at least 85% of the state
employer cost of providing comparable benefits to state employees
performing similar duties.  The types of workers covered by this
requirement include persons that provide janitorial and housekeeping
services, custodians, food service workers, laundry workers, window
cleaners, and security guards.
   (14) Existing law requires the State Treasurer to act as
Administrator of Local Agency Security and to be responsible for the
administration of specified statutes governing the deposit and
investment of local agency funds and related matters.
   This bill would transfer this authority to the Commissioner of
Financial Institutions.
   (15) Existing law establishes the Homebuyer Down Payment
Assistance Program and the Rental Assistance Program, administered by
the California Housing Finance Agency pursuant to a contract with
the Department of General Services, to provide assistance in the
amount of the applicable school facility fee on affordable housing
developments.  In certain instances, the downpayment assistance is
limited to residential structures with a sales price that does not
exceed $110,000.  In other instances, the qualified first-time
homebuyer is required to meet specified very low or low-income
requirements.
   This bill would increase the $110,000 limit on the sales price of
residential structures eligible for that downpayment assistance to
$130,000, and would require that amount to be increased or decreased
annually, according to a specified measure of the median sales price
of new homes.  The bill would require those qualified first-time
homebuyers to meet specified moderate income requirements, instead of
existing requirements pertaining to very low or low-income persons.

   (16) Existing law, for the purposes of the Homebuyer Down Payment
Assistance Program and the Rental Assistance Program, establishes the
School Facilities Fee Assistance Fund, which is continuously
appropriated to the Department of General Services.  Existing law
specifies that those funds not expended for a specified homebuyer
downpayment assistance program within 18 months shall be available
for other specified homebuyer downpayment assistance programs.
   This bill would provide that those funds, if not expended within
18 months of their appropriation and availability, shall be available
for other specified homebuyer downpayment assistance programs.
   The bill would make an appropriation by authorizing the
expenditure of funds in the School Facilities Fee Assistance Fund for
additional purposes.
   (17) Existing law requires every person engaged in the business of
garment manufacturing, as defined, to register with the Labor
Commissioner and to pay an initial registration fee and an annual
renewal fee.  Existing law provides that the commissioner shall
deposit $75 of each registrant's annual registration fee into a
separate account to be disbursed only to persons damaged by failure
of a garment manufacturer, jobber, contractor, or subcontractor to
pay wages and benefits.  The remainder of the annual registration fee
not deposited into the special account is applied to costs in
implementing the registration requirements.
   This bill would revise these provisions to provide for the deposit
of registration fees not allocated to the special account in a
subaccount.  In addition to implementing the registration
requirements, fees deposited in the subaccount would be used to cover
costs incurred by the Labor Commissioner in reviewing claims by
employees to recover unpaid wages.  Moneys in the subaccount would be
available for expenditure upon appropriation by the Legislature.
   (18) Existing law requires the Division of Apprenticeship
Standards to set fees necessary to establish minimum standards for
the competency and training of electricians.
   This bill would create the Electrician Certification Fund as a
special account in the State Treasury for deposit of fees collected
to fund the Division of Apprenticeship Standards program.  Moneys in
that fund would be available for expenditure upon appropriation by
the Legislature.
   (19) Existing law permits the Division of Occupational Safety and
Health to fix and collect fees necessary to administer the Permanent
Amusement Ride Safety Inspection Program, a state system for the
inspection of permanent amusement rides.
   This bill would create the Permanent Amusement Ride Inspection
Fund, a special account for deposit of fees collected to fund the
Permanent Amusement Ride Safety Inspection Program.  Moneys in that
fund would be available for expenditure upon appropriation by the
Legislature.
   (20) Existing law provides that the Adjutant General is the head
of the Military Department.
   This bill would authorize the Adjutant General to enter into an
agreement with the City of Oakland and a school district to establish
the Oakland Military Institute, a nonresidential college preparatory
institution.  The bill would appropriate $1.3 million to the
Military Department for this purpose.
   (21) Under existing law, the Department of Corrections provides
specified treatment programs for inmates and parolees convicted of
committing sex offenses.
   This bill would provide, in addition, that the Department of
Corrections may require parolees participating in relapse prevention
treatment programs or receiving medication treatments intended to
prevent them from committing sex offenses to pay some or all of the
costs associated with the treatment, subject to the person's ability
to pay, as defined.
   (22) Existing law generally regulates the incarceration of
prisoners.
   This bill would authorize the Director of the Department of
Corrections to adopt regulations relating to rebates for
pharmaceuticals, as specified, and to enter into interagency
agreements relating to purchasing pharmaceuticals.  The bill would
also require the Bureau of State Audits to report to the Legislature
and the Governor, not later than January 10, 2002, specified findings
relating to pharmaceutical and medical supply procurement for
offenders in state custody, as specified.  The bill would also
express certain findings and declarations of the Legislature.
   (23) Under existing law, the Department of General Services is
authorized to establish the California Multiple Awards Schedule
program, which permits state agencies to purchase information
technology services from vendors that hold federal contracts.
   This bill would authorize the Director of General Services to
enter a variety of types of contracts for information technology
services, including using master agreements, multiple award
schedules, cooperative agreements, and other types of agreements that
enhance the state's buying power.  The director would also be
authorized to provide the procurement services of the department to
school districts, which would be authorized to use the department's
agreements without competitive bidding.
   (24) The existing restructuring of the electrical services
industry provides for the authorization of direct transactions
between electricity suppliers and end use customers and for the
creation of an Independent System Operator and a Power Exchange.
   This bill would authorize the Public Utilities Commission to
investigate issues relating to multiple qualified exchanges.  The
bill would require the commission to prepare and submit findings and
recommendations to the Legislature if it determines that allowing
electrical corporations to purchase from multiple qualified exchanges
is in the public interest.  The bill would prohibit the commission,
prior to June 1,2001, from implementing the part of any decision
authorizing electrical corporations to purchase from exchanges other
than the Power Exchange.  The bill would also prohibit the
implementation of the portion of certain commission decisions that
authorizes electrical corporations to purchase from multiple
qualified exchanges.
   (25) Existing law authorizes the Department of Transportation to
establish and maintain shops for the construction, repair, and
servicing of any equipment owned or used by the department.  The
department is authorized to purchase and supply any materials and
parts, and furnish any labor, that is necessary in the construction,
repair, and servicing of equipment for other state departments.  The
other state departments receiving those services are required to
reimburse the department for the cost of the materials, parts, and
labor, including overhead charges.
   This bill would require the department, with the approval of the
Department of Finance, to set rates for mobile equipment services, as
defined.  The bill would require the department to review its rates
for those services on an annual basis and, upon approval by the
Department of Finance, to publish a rate schedule on or before April
30 of each year.  The bill would require the department to collect
mobile equipment services cost recovery, as defined.
   The bill would create the Equipment Service Fund in the State
Treasury and would continuously appropriate the money in the fund to
the department to pay for mobile equipment services.  The bill would
require that the net proceeds from mobile equipment services cost
recovery be deposited in the fund.  In addition, the bill would
authorize any moneys appropriated to the department under the annual
Budget Act, or under any other act, for the use of existing mobile
equipment or for the purchase of that equipment, and any moneys
transferred to the department from any account within the State
Transportation Fund for those purposes, to be deposited in the fund.

   The bill would authorize refunds to programs that were assessed
mobile equipment service charges during a fiscal year, under certain
circumstances.
   (26) The existing Performance and Results Act of 1993 requires the
Department of Finance to develop a performance budgeting pilot
project, in accordance with specified principles, involving 4 state
departments, including the Department of General Services.  Existing
law sets forth the conditions pursuant to which the Department of
General Services, notwithstanding existing statutes and regulations,
is required or authorized, among other things, to carry out specified
functions relating to state personnel matters, to prepay vendors
when cost-beneficial to the department, to accept gifts and donations
of real property without approval by the Director of Finance, to
authorize employees of the department of travel outside the state or
country without approval of the Department of Finance, and to exempt
the department from a provision of law that automatically abolishes
positions in state civil service that are vacant continuously for a
specified period of time.  These provisions of existing law remain in
effect until the effective date of the Budget Act of 2000 or June
30, 2000, whichever occurs later.
   This bill would reenact provisions relating to administrative
functions that the Department of General Services is authorized to
perform, but would not include the functions described above.  The
bill would set forth the conditions pursuant to which the director of
the department, notwithstanding existing statutes and regulations,
is required or authorized, among other things, to procure goods from
the private sector even though the goods may be available through the
Prison Industry Authority, certify funds for the payment of
specified legal settlements and tort claims, and approve specified
departmental forms in lieu of the Director of Finance.  This bill
would specify that these provisions shall remain in effect only until
the effective date of the Budget Act of 2001 or June 30, 2001,
whichever occurs later.
   (27) Under existing law, the Department of Veterans Affairs is
responsible for the administration and physical maintenance of the
Veterans' Home of California Yountville.
   This bill would require the department to renovate the Lincoln
Theater at the veterans' home and would specify the scope of the
renovation.  The renovation would be managed by the Department of
General Services.
   (28) Existing law authorizes the Department of Transportation to
plan, design, construct, operate, and maintain those transportation
systems that the Legislature makes the responsibility of the
department.
   This bill would require the department, in consultation with the
Office of Planning and Research, to conduct a statewide rail
transportation assessment, as specified, including a report that
would address certain issues and would be submitted to the
Legislature on or before January 1, 2002.
  (29) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   (30) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 215 of the Code of Civil Procedure is amended
to read:
   215.  (a) Beginning July 1, 2000, the fee for jurors in the
superior and municipal courts, in civil and criminal cases, is
fifteen dollars ($15) a day for each day's attendance as a juror
after the first day.
   (b) Unless a higher rate of mileage is otherwise provided by
statute or by county or city and county ordinance, jurors in the
superior and municipal courts shall be reimbursed for mileage at the
rate of fifteen cents ($0.15) per mile for each mile actually
traveled in attending court as a juror, in going only.
  SEC. 2.  Section 631 of the Code of Civil Procedure is amended to
read:
   631.  (a) Trial by jury may be waived by the several parties to an
issue of fact in any of the following ways:
   (1) By failing to appear at the trial.
   (2) By written consent filed with the clerk or judge.
   (3) By oral consent, in open court, entered in the minutes or
docket.
   (4) By failing to announce that a jury is required, at the time
the cause is first set for trial, if it is set upon notice or
stipulation, or within five days after notice of setting if it is set
without notice or stipulation.
   (5) By failing to deposit with the clerk, or judge, advance jury
fees 25 days prior to the date set for trial, except in unlawful
detainer actions where the fees shall be deposited at least five days
prior to the date set for trial, or as provided by subdivision (b).
An advance jury fee deposited pursuant to this paragraph may not
exceed a total of one hundred fifty dollars ($150).
   (6) By failing to deposit with the clerk or judge, promptly after
the impanelment of the jury, a sum equal to the mileage or
transportation (if allowed by law) of the jury accrued up to that
time.
   (7) By failing to deposit with the clerk or judge, at the
beginning of the second and each succeeding day's session a sum equal
to one day's fees of the jury, and the mileage or transportation, if
any.
   (b) In a superior court action, other than a limited civil case,
if a jury is demanded by either party in the memorandum to set the
cause for trial and the party, prior to trial, by announcement or by
operation of law, waives a trial by jury, then all adverse parties
shall have five days following the receipt of notice of the waiver to
file and serve a demand for a trial by jury and to deposit any
advance jury fees that are then due.
   (c) When the party who has demanded trial by jury either (1)
waives the trial upon or after the assignment for trial to a specific
department of the court, or upon or after the commencement of the
trial, or (2) fails to deposit the fees as provided in paragraph (6)
of subdivision (a), trial by jury shall be waived by the other party
by either failing promptly to demand trial by jury before the judge
in whose department the waiver, other than for the failure to deposit
the fees, was made, or by failing promptly to deposit the fees
described in paragraph (6) of subdivision (a).
   (d) The court may, in its discretion upon just terms, allow a
trial by jury although there may have been a waiver of a trial by
jury.
  SEC. 3.  Section 1730 of the Code of Civil Procedure is amended to
read:
   1730.  (a) The Judicial Council shall establish pilot programs in
four superior courts to assess the benefits of early mediation of
civil cases.  In two of these pilot program courts, the court shall
have the authority to make mandatory referrals to mediation, pursuant
to this title.
   (b) The Judicial Council shall select the courts to participate in
the pilot program.
   (c) In addition to the pilot programs established under
subdivision (a), the Judicial Council shall establish a pilot program
in the Los Angeles Superior Court in 10 departments handling civil
cases.  These departments shall have the authority to make mandatory
referrals to mediation, pursuant to this title.  The court shall be
responsible for paying the mediator's fees, to the extent provided in
Section 1735.
  SEC. 4.  Section 1734 of the Code of Civil Procedure is amended to
read:
   1734.  (a) Notwithstanding Section 68616 of the Government Code or
any other provision of law, in cases subject to this title, the
court may hold a status conference not earlier than 90 days and not
later than 150 days after the filing of the complaint.  However, at
or before the conference, any party may request that the status
conference be continued on the grounds that the party has been unable
to serve an essential party to the proceeding.
   (b) At this status conference, the court shall confer with the
parties about alternative dispute resolution processes and, in Los
Angeles Superior Court and the other two pilot program courts
authorized to make mandatory referrals to mediation, the court may
refer the parties to mediation in accordance with this title, if the
court, in its discretion, determines there is good cause for ordering
mediation.  Before making a referral, the court shall consider the
willingness of the parties to mediate.
  SEC. 5.  Section 1735 of the Code of Civil Procedure is amended to
read:
   1735.  (a) Each pilot program court authorized to make mandatory
referrals to mediation pursuant to this title shall establish a panel
of mediators.
   (b) In cases referred to mediation pursuant to this title, the
parties shall select the mediator.  The mediator selected by the
parties need not be from the court's panel of mediators.  If the
parties do not select a mediator within the time period specified in
the rules adopted by the Judicial Council, a mediator shall be
selected by the court from the court's panel of mediators.  If a
mediator from the court's panel is not available to mediate a case
referred pursuant to this subdivision in a timely manner, this title
shall not apply.
   (c) If the mediator is not from the court's panel, the court may
approve compensation for the fees for that mediator's services from
court funds pursuant to subdivision (d).  Otherwise, the parties
shall be responsible for paying any fees for the mediator's services,
and each party to the proceeding shall share equally in the fee of
the mediator, except where the parties agree otherwise.  If the
mediator is from the court's panel of mediators, the parties shall
not be required to pay a fee for the mediator's services.
   (d) The Judicial Council shall adopt rules to implement this
section, including rules establishing requirements for the panels of
mediators, the procedures to be followed in selecting a mediator, and
the compensation of mediators who conduct mediations pursuant to
this title.
  SEC. 6.  Section 1742 of the Code of Civil Procedure is amended to
read:
   1742.  On or before January 1, 2003, the Judicial Council shall
submit a report to the Legislature and to the Governor concerning the
pilot programs conducted pursuant to this title.  The report shall
examine, among other things, the settlement rate, the timing of
settlement, the litigants' satisfaction with the dispute resolution
process and the costs to the litigants and the courts.  The report
shall also include a comparison of court ordered mediation, as
provided in Section 1730, to voluntary mediation in Los Angeles
County.  The Judicial Council shall, by rule, require that each pilot
program court provide the Judicial Council with the data that will
enable the Judicial Council to submit the report required by this
section.
  SEC. 6.5.  Section 14038 of the Corporations Code is amended to
read:
   14038.  (a)  The funds in the loan account shall be paid out to a
small business development corporation loan guarantee fund by the
Treasurer on warrants drawn by the Controller and requisitioned by
the office, pursuant to the purposes of this chapter.  The office may
transfer funds allocated to the corporate fund to accounts,
established solely to receive the funds, in lending institutions
designated by that corporation.  The lending institutions so
designated shall be approved by the state for the receipt of state
deposits.  Interest earned on the accounts in lending institutions
may be utilized by the corporations pursuant to the purposes of this
chapter.
   (b) Except as specified in subdivision (c), the office shall
reallocate and transfer money to corporate trust accounts based on
performance-based criteria.  The criteria shall include, but not be
limited to, the following:
   (1) The default record of the corporation.
   (2) The number and amount of loans guaranteed by a corporation.
   (3) The number and amount of loans made by a corporation if state
funds were used to make those loans.
   (4) The number and amount of surety bonds guaranteed by a
corporation.
   Any decision made by the office pursuant to this subdivision may
be appealed to the board within 15 days of notice of the proposed
action.  The board may repeal or modify any reallocation and transfer
decisions made by the office.
   (c) The criteria specified in subdivision (b) shall not apply to a
corporation that has been in existence for five years or less.  The
office shall develop regulations specifying the basis for
transferring account funds to those corporations that have been in
existence for five years or less.
  SEC. 7.  Section 17070.70 of the Education Code is amended to read:

   17070.70.  (a) Title, including, but not limited to, any leasehold
interest as set forth in subdivision (c), to all property acquired,
constructed, or improved with funds made available under this chapter
shall be held by the school district to which the board grants the
funds.
   (b) The applicant school district shall comply with all laws
pertaining to the construction, reconstruction, or alteration of, or
addition to, school buildings.
   (c) Notwithstanding Section 17009.5, construction or modernization
funds made available pursuant to this chapter may be expended upon
property that is leased to the applicant school district only if the
project qualified for and received approval by the board, prior to
November 4, 1998, pursuant to Article 4 (commencing with Section
17055), of Chapter 12.
  SEC. 8.  Section 12012.85 of the Government Code is amended to
read:
   12012.85.  There is hereby created in the State Treasury a fund
called the "Indian Gaming Special Distribution Fund" for the receipt
and deposit of moneys received by the state from Indian tribes
pursuant to the terms of tribal-state gaming compacts.  These moneys
shall be available for appropriation by the Legislature for the
following purposes:
   (a) Grants, including any administrative costs, for programs
designed to address gambling addiction.
   (b) Grants, including any administrative costs, for the support of
state and local government agencies impacted by tribal government
gaming.
   (c) Compensation for regulatory costs incurred by the State Gaming
Agency and the Department of Justice in connection with the
implementation and administration of tribal-state gaming compacts.
   (d) Disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance with the
terms of tribal-state gaming compacts ratified pursuant to Chapter
874 of the Statutes of 1999.  No more than 10 percent of the funds
appropriated in the Budget Act of 2000 for implementation of tribal
labor relations ordinances promulgated in accordance with those
compacts shall be expended in the selection of the Tribal Labor
Panel.  The Department of Personnel Administration shall consult with
and seek input from the parties prior to any expenditure for
purposes of selecting the Tribal Labor Panel.  Other than the cost of
selecting the Tribal Labor Panel, there shall be no further
disbursements until the Tribal Labor Panel, which is selected by
mutual agreement of the parties, is in place.
   (e) Any other purpose specified by law.
  SEC. 9.  Section 12439 of the Government Code is amended to read:
   12439.  (a) Beginning July 1, 2001, and on each July 1 thereafter,
the Controller shall abolish any state position that was vacant
continuously for six consecutive monthly pay periods during the
period between July 1 and June 30 of the preceding fiscal year.
Those positions that were continuously vacant for six consecutive
monthly pay periods during a fiscal year because of a hiring freeze
in effect during part or all of the period shall also be abolished
unless the need for continuing these positions is provided in written
notice to, and approval is granted by, the Director of Finance.
   (b) If late enactment of the annual Budget Act contributes to the
abolishment of any proposed new position or positions, or if
significant recruitment problems for hard-to-fill classifications, as
determined by the Department of Finance, contribute to the
abolishment of positions, a state agency may submit a written request
for reestablishment of the positions to the Director of Finance.
The positions may be reestablished upon approval granted by the
Director of Finance.
   (c) The only exceptions to this abolishment are those positions
exempt from civil service or those instructional and
instruction-related positions authorized for the California State
University.  No money appropriated by the subsequent Budget Act shall
be used to pay the salary of any otherwise authorized state position
that is abolished pursuant to this section.
   (d) The Controller, no later than the following August 1 of each
succeeding fiscal year, shall notify the Department of Finance in
writing of any authorized state position that was vacant continuously
during  that period.
   (e) The Controller, no later than the following December 1 of each
succeeding fiscal year, shall furnish the Joint Legislative Budget
Committee a report on all positions as of July 1 that were unfilled
continuously for six consecutive monthly pay periods during the
period between July 1 and June 30 of the preceding fiscal year.
  SEC. 10.  Section 13968.7 is added to the Government Code, to read:

   13968.7.  (a) The State Board of Control may enter into an
interagency agreement with the University of California, San
Francisco to establish a victims of crime recovery center at the San
Francisco General Hospital to demonstrate the effectiveness of
providing comprehensive and integrated services to victims of crime,
subject to this article and conditions set forth by the State Board
of Control.  Notwithstanding subdivision (j) of Section 13965, the
board may establish supplemental mental health rates for eligible
victims under this article through the victims of crime recovery
center.  The interagency agreement between the board and the
university shall set forth performance measures to evaluate annually
the effectiveness of the victims of crime recovery center in
providing treatment.
   (b) This section shall not apply to the University of California
unless the Regents of the University of California, by appropriate
resolution, make this section applicable.
   (c) This section shall become inoperative on June 30, 2004, and as
of January 1, 2005, is repealed, unless a later enacted statute that
is enacted before January 1, 2005, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 11.  Section 15202 of the Government Code is amended to read:

   15202.  A county which is responsible for the cost of a trial or
trials or any hearing of a person for the offense of homicide may
apply to the Controller for reimbursement of the costs incurred by
the county in excess of the amount of money derived by the county
from a tax of 0.0125 of 1 percent of the full value of property
assessed for purposes of taxation within the county.
   The Controller shall not reimburse any county for costs that
exceed the State Board of Control's standards for travel and per diem
expenses.  The Controller may reimburse extraordinary costs in
unusual cases if the county provides sufficient justification of the
need for these expenditures.   Nothing in this section shall permit
the reimbursement of costs for travel in excess of 1,000 miles on any
single round trip, without the prior approval of the Attorney
General.
   This section shall become operative on January 1, 2005.
  SEC. 12.  Section 15202 is added to the Government Code, to read:
   15202.  (a) A county with a population of 300,000 or less, at the
time of the 1980 decennial census, that is responsible for the cost
of a trial or trials or any hearing of a person for the offense of
homicide may apply to the Controller for reimbursement of 90 percent
of the costs incurred by the county for each homicide trial or
hearing, without regard to fiscal years, in excess of the amount of
money derived by the county from a tax of 0.00625 of 1 percent of the
full value of property assessed for purposes of taxation within the
county.
   (b) (1) A county with a population of 200,000 or less, as of
January 1, 1990, that is responsible for the cost of two or more
trials or hearings within a fiscal year of a person or persons for
the offense of homicide may apply to the Controller for reimbursement
of 90 percent of the costs incurred in a fiscal year by the county
for the conduct of the first trial within a fiscal year, and 85
percent of the costs incurred in a fiscal year by the county for the
conduct of any and all subsequent trials or hearings in excess of the
amount of money derived by the county from a tax of 0.00625 of 1
percent of the full value of property assessed for purposes of
taxation within the county.
   (2) A county with a population of 200,000 or less, as of January
1, 1990, that, within a fiscal year, is reimbursed for costs incurred
by the county for the conduct of only one trial or hearing pursuant
to subdivision (a) shall be reimbursed for that one trial or hearing
in subsequent fiscal years for costs incurred in those subsequent
fiscal years without again being required to expend county funds
equal to 0.00625 of 1 percent of the full value of property assessed
for purposes of taxation within the county, so long as all
reimbursements to the county under this paragraph are for only that
one trial or hearing.
   For purposes of this subdivision, in determining the costs of a
homicide trial, trials, hearing, or hearings, the costs shall
include, all pretrial, trial, and posttrial costs incurred in
connection with the investigation, prosecution, and defense of a
homicide case or cases within a fiscal year, including, but not
limited to, the costs incurred by the district attorney, sheriff,
public defender, and witnesses, that were reasonably required by the
court and participants in the case or cases, and other extraordinary
costs associated with the investigation in homicide cases.
   (c) A county with a population exceeding 300,000 at the time of
the 1980 decennial census that is responsible for the cost of a trial
or trials or any hearing of a person for the offense of homicide may
apply to the Controller for reimbursement of 80 percent of the costs
incurred by the county in excess of the amount of money derived by
the county from a tax of 0.00625 of 1 percent, and not in excess of
the amount of money derived from a tax of 0.0125 of 1 percent, and
for reimbursement of 100 percent of the costs incurred in excess of
the amount of money derived from a tax of 0.0125 percent, of the full
value of property assessed for purposes of taxation within the
county.
   (d) A county that is eligible for reimbursement under subdivision
(a), (b), or (c) shall be reimbursed for the total actual costs
incurred for a homicide trial in excess of the amount of money
derived by the county from a tax of 0.0125 of 1 percent of the full
value of property assessed for purposes of taxation within the
county, when the cost of a trial, as defined in subdivision (a), (b),
or (c), exceeds 0.0125 of 1 percent of the full value of property
assessed for purposes of taxation within the county.
   (e) The Controller shall not reimburse any county for costs that
exceed the standards for travel and per diem expenses set forth in
Sections 700 to 715, inclusive, and Section 718 of Title 2 of the
California Code of Regulations.  The Controller may reimburse
extraordinary costs in unusual cases if the county provides
sufficient justification of the need for these expenditures.  Nothing
in this section shall permit the reimbursement of costs for travel
in excess of 1,000 miles on any single round trip, without the prior
approval of the Attorney General.
   (f) The Legislature recognizes that the conduct of trials for
persons accused of homicide should not be hampered or delayed because
of a lack of funds available to the counties for that purpose.
While this section is intended to provide an equitable basis for
determining the allocation to the state of the costs of homicide
trials in any particular county, the rising costs of those trials
necessitate an objective study to assure reasonable financial
restraints and incentives for cost effectiveness that do not place an
unreasonable burden on the treasury of the smaller counties.
   (g) This section shall remain operative only until January 1,
2005, and as of that date is repealed.
  SEC. 13.  Chapter 1.4 (commencing with Section 15363.70) is added
to Part 6.7 of Division 3 of Title 2 of the Government Code, to read:


      CHAPTER 1.4.  FILM CALIFORNIA FIRST PROGRAM

   15363.70.  This chapter shall be known and may be cited as the
Film California First Program.
   15363.71.  (a) The Legislature finds and declares as follows:
   (1) The entertainment industry is one of California's leading
industries in terms of employment and tax revenue.
   (2) While film, television, and commercial production in
California has expanded over the years, other states and countries
actively compete for California production business.  It is generally
acknowledged that certain segments of the industry, mainly film and
television production, are especially hard hit in California.  The
Legislature finds that this is due to assertive efforts of other
states and countries, offering various incentives for filming outside
of California.  As a result of increased marketing efforts by other
states and countries, unemployment in certain film industry sectors
and a reduction of film business has occurred within California.
   (3) Recognizing the vital role the entertainment industry plays in
California's economy, legislation enacted in 1985 created the
California Film Commission within the Trade and Commerce Agency to
facilitate, retain, and attract filming in California.
   (4) In order to stop the decline of California film production, it
is necessary and appropriate to assist in the underwriting of actual
costs incurred by production companies to film in California and to
provide opportunities for production companies and other film
industry companies to lease property owned by the State of California
at below market rates.
   (5) Providing the funds designated under this program, and leasing
property owned by the State of California at below market rates is
in the public interest and serves a public purpose, and providing
incentives to production companies and other film industry companies
will promote the prosperity, health, safety, and welfare of the
citizens of the State of California.
   (b) It is the intent of the Legislature that funding for the
program be provided from the General Fund through the annual Budget
Act in the amount of fifteen million dollars ($15,000,000) per year
for three years, commencing with the 2000-01 fiscal year.
   15363.72.  For purposes of this chapter, the following meanings
shall apply:
   (a) "Agency" means the Trade and Commerce Agency, which includes
the California Film Commission.
   (b) "Film" means any commercial production for motion picture,
television, commercial, or still photography.
   (c) "Film costs" means the usual and customary charges by a public
agency connected with the production of a film, in any of the
following categories:
   (1) State employee costs.
   (2) Federal employee costs.
   (3) Federal, state, University of California, and California State
University permits and rental costs.
   (4) Local public entity employee costs for fire services and
nonpolice public safety.
   (d) "Fund" means the Film California First Fund, established
pursuant to Section 15363.74.
   (e) "Production company" means a company, partnership, or
corporation, engaged in the production of film.
   (f) "Program" means the Film California First Program established
pursuant to this chapter.
   (g) "Public agency" means any of the following:
   (1) The State of California, and any of its agencies, departments,
boards, or commissions.
   (2) The federal government, and any of its agencies, departments,
boards, or commissions.
   (3) The University of California.
   (4) The California State University.
   (5) Local public entities.
   (6) Any nonprofit corporation acting as an agent for the recovery
of costs incurred by any of the entities listed in this subdivision.

   15363.73.  (a) The agency may pay and reimburse the film costs
incurred by a public agency, subject to audit.  Payment may be made
either directly to the public agency or to the production company
that has paid the public agency costs.  The agency shall only
reimburse actual costs incurred and may not reimburse for duplicative
costs.  All requests for payment of film costs shall be accompanied
by an invoice from the public entity for the agency's review, at its
discretion.
   (b) Notwithstanding any other provision of law, the Controller
shall pay any program invoice received from the agency that contains
documentation detailing the film costs, and if the party requesting
payment or reimbursement is a public agency, a certification that the
invoice is not duplicative cost recovery, and an agreement by the
public agency that the agency may audit the public agency for invoice
compliance with the program requirements.
   (c) Not more than three hundred thousand dollars ($300,000) shall
be expended to pay or reimburse costs incurred on any one film.
   15363.74.  (a) The Film California First Fund is hereby
established in the State Treasury.
   (b) The following moneys shall be paid into the fund:
   (1) Any moneys appropriated and made available by the Legislature
for the purposes of this chapter.
   (2) Any other moneys that may be made available to the agency for
the purpose of this chapter from any other source, including the
return from investments of moneys by the Treasurer.
   15363.75.  Procedures and guidelines promulgated to clarify and
make specific provisions of the program established pursuant to this
chapter, or of any other film assistance
                 program within the agency, shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
for a period of 36 months after the effective date of this chapter.
Following the 36-month exemption, the agency may adopt regulations
concerning the implementation of this chapter as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1.  The adoption of these regulations is an emergency
and necessary for the immediate preservation of the public peace,
health and safety, or general welfare within the meaning of
subdivision (b) of Section 11346.1.  Notwithstanding subdivision (e)
of Section 11346.1, the regulations shall not remain in effect for
more than 180 days unless the agency complies with all provisions of
Chapter 3.5 (commencing with Section 11340) of Part 1, as required by
subdivision (e) of Section 11346.1.
  SEC. 14.  Section 16429.30 of the Government Code is amended to
read:
   16429.30.  The California Unitary Fund is hereby abolished.  Any
assets or liability of that fund is transferred to the General Fund.
On and after January 1, 2001, all money that would have been
deposited in the fund pursuant to any provision of law shall instead
be deposited in the General Fund.
  SEC. 15.  Section 16429.34 of the Government Code is repealed.
  SEC. 16.  Section 16429.36 of the Government Code is repealed.
  SEC. 17.  Section 16429.38 of the Government Code is repealed.
  SEC. 18.  Section 16429.40 of the Government Code is repealed.
  SEC. 19.  Section 16429.49 of the Government Code is repealed.
  SEC. 20.  Section 19134 is added to the Government Code, to read:
   19134.  (a) Personal services contracts entered into by a state
agency in accordance with subdivision (a) of Section 19130 for
persons providing janitorial and housekeeping services, custodians,
food service workers, laundry workers, window cleaners, and security
guard services shall include provisions for employee benefits that
are valued at least 85 percent of the state employer cost of
comparable benefits provided to state employees for performing
similar duties.
   (b) For purposes of this section, "benefits" includes "health,
dental, vision, and similar group insurance benefits."
   (c) The Department of Personnel Administration shall determine
annually the state employer benefit costs for workers covered under
subdivision (a).
   (d) This section applies to all contracts exceeding 90 days.
  SEC. 21.  Section 53661 of the Government Code is amended to read:

   53661.  (a) The Commissioner of Financial Institutions shall act
as Administrator of Local Agency Security and shall be responsible
for the administration of Sections 53638, 53651, 53651.2, 53651.4,
53651.6, 53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660,
53661, 53663, 53664, 53665, 53666, and 53667.
   (b) The administrator shall have the powers necessary or
convenient to administer and enforce the sections specified in
subdivision (a).
   (c) (1) The administrator shall issue regulations consistent with
law as the administrator may deem necessary or advisable in executing
the powers, duties, and responsibilities assigned by this article.
The regulations may include regulations prescribing standards for the
valuation, marketability, and liquidity of the eligible securities
of the class described in subdivision (m) of Section 53651,
regulations prescribing procedures and documentation for adding,
withdrawing, substituting, and holding pooled securities, and
regulations prescribing the form, content, and execution of any
application, report, or other document called for in any of the
sections specified in subdivision (a) or in any regulation or order
issued under any of those sections.
   (2) The administrator, for good cause, may waive any provision of
any regulation adopted pursuant to paragraph (1) or any order issued
under this article, where the provision is not necessary in the
public interest.
   (d) The administrator may enter into any contracts or agreements
as may be necessary, including joint underwriting agreements, to sell
or liquidate eligible securities securing local agency deposits in
the event of the failure of the depository or if the depository fails
to pay all or part of the deposits of a local agency.
   (e) The administrator shall require from every depository a report
certified by the agent of depository listing all securities, and the
market value thereof, which are securing local agency deposits
together with the total deposits then secured by the pool, to
determine whether there is compliance with Section 53652.  These
reports may be required whenever deemed necessary by the
administrator, but shall be required at least four times each year at
the times designated by the Comptroller of the Currency for reports
from national banking associations.  These reports shall be filed in
the office of the administrator by the depository within 20 business
days of the date the administrator calls for the report.
   (f) The administrator may have access to reports of examination
made by the Comptroller of the Currency insofar as the reports relate
to national banking association trust department activities which
are subject to this article.
   (g) (1) The administrator shall require the immediate substitution
of an eligible security, where the substitution is necessary for
compliance with Section 53652, if (i) the administrator determines
that a security listed in Section 53651 is not qualified to secure
public deposits, or (ii) a treasurer, who has deposits secured by the
securities pool, provides written notice to the administrator and
the administrator confirms that a security in the pool is not
qualified to secure public deposits.
   (2) The failure of a depository to substitute securities, where
the administrator has required the substitution, shall be reported by
the administrator promptly to those treasurers having money on
deposit in that depository and, in addition, shall be reported as
follows:
   (A) When that depository is a national bank, to the Comptroller of
the Currency of the United States.
   (B) When that depository is a state bank, to the Commissioner of
Financial Institutions.
   (C) When that depository is a federal association, to the Office
of Thrift Supervision.
   (D) When that depository is a savings association, to the
Commissioner of Financial Institutions.
   (E) When that depository is a federal credit union, to the
National Credit Union Administration.
   (F) When that depository is a state credit union or a federally
insured industrial loan company, to the Commissioner of Financial
Institutions.
   (h) The administrator may require from each treasurer a
registration report and at appropriate times a report stating the
amount and location of each deposit together with other information
deemed necessary by the administrator for effective operation of this
article.  The facts recited in any report from a treasurer to the
administrator are conclusively presumed to be true for the single
purpose of the administrator fulfilling responsibilities assigned to
him or her by this article and for no other purpose.
   (i) (1) If, after notice and opportunity for hearing, the
administrator finds that any depository or agent of depository has
violated or is violating, or that there is reasonable cause to
believe that any depository or agent of depository is about to
violate, any of the sections specified in subdivision (a) or any
regulation or order issued under any of those sections, the
administrator may order the depository or agent of depository to
cease and desist from the violation or may by order suspend or revoke
the authorization of the agent of depository.  The order may require
the depository or agent of depository to take affirmative action to
correct any condition resulting from the violation.
   (2) (A) If the administrator makes any of the findings set forth
in paragraph (1) with respect to any depository or agent of
depository and, in addition, finds that the violation or the
continuation of the violation is likely to seriously prejudice the
interests of treasurers, the administrator may order the depository
or agent of depository to cease and desist from the violation or may
suspend or revoke the authorization of the agent of depository.  The
order may require the depository or agent of depository to take
affirmative action to correct any condition resulting from the
violation.
   (B) Within five business days after an order is issued under
subparagraph (A), the depository or agent of depository may file with
the administrator an application for a hearing on the order.  The
administrator shall schedule a hearing at least 30 days, but not more
than 40 days, after receipt of an application for a hearing or
within a shorter or longer period of time agreed to by a depository
or an agent of depository.  If the administrator fails to schedule
the hearing within the specified or agreed to time period, the order
shall be deemed rescinded.  Within 30 days after the hearing, the
administrator shall affirm, modify, or rescind the order; otherwise,
the order shall be deemed rescinded.  The right of a depository or
agent of depository to which an order is issued under subparagraph
(A) to petition for judicial review of the order shall not be
affected by the failure of the depository or agent of depository to
apply to the administrator for a hearing on the order pursuant to
this subparagraph.
   (3) Whenever the administrator issues a cease and desist order
under paragraph (1) or (2), the administrator may in the order
restrict the right of the depository to withdraw securities from a
security pool; and, in that event, both the depository to which the
order is directed and the agent of depository which holds the
security pool shall comply with the restriction.
   (4) In case the administrator issues an order under paragraph (1)
or (2) suspending or revoking the authorization of an agent of
depository, the administrator may order the agent of depository at
its own expense to transfer all pooled securities held by it to such
agent of depository as the administrator may designate in the order.
The agent of depository designated in the order shall accept and
hold the pooled securities in accordance with this article and
regulations and orders issued under this article.
   (j) In the discretion of the administrator, whenever it appears to
the administrator that any person has violated or is violating, or
that there is reasonable cause to believe that any person is about to
violate, any of the sections specified in subdivision (a) or any
regulation or order issued thereunder, the administrator may bring an
action in the name of the people of the State of California in the
superior court to enjoin the violation or to enforce compliance with
those sections or any regulation or order issued thereunder.  Upon a
proper showing a permanent or preliminary injunction, restraining
order, or writ of mandate shall be granted, and the court may not
require the administrator to post a bond.
   (k) In addition to other remedies, the administrator shall have
the power and authority to impose the following sanctions for
noncompliance with the sections specified in subdivision (a) after a
hearing if requested by the party deemed in noncompliance.  Any fine
assessed pursuant to this subdivision shall be paid within 30 days
after receipt of the assessment.
   (1) Assess against and collect from a depository a fine not to
exceed two hundred fifty dollars ($250) for each day the depository
fails to maintain with the  agent of depository securities as
required by Section 53652.
   (2) Assess against and collect from a depository a fine not to
exceed one hundred dollars ($100) for each day beyond the time period
specified in subdivision (b) of Section 53663 the depository
negligently or willfully fails to file in the office of the
administrator a written report required by that section.
   (3) Assess against and collect from a depository a fine not to
exceed one hundred dollars ($100) for each day beyond the time period
specified in subdivision (e) that a depository negligently or
willfully fails to file in the office of the administrator a written
report required by that subdivision.
   (4) Assess and collect from an agent of depository a fine not to
exceed one hundred dollars ($100) for each day the agent of
depository fails to comply with any of the applicable sections
specified in subdivision (a) or any applicable regulation or order
issued thereunder.
   (l) (1) In the event that a depository or agent of depository
fails to pay a fine assessed by the administrator pursuant to
subdivision (k) within 30 days of receipt of the assessment, the
administrator may assess and collect an additional penalty of 5
percent of the fine for each month or part thereof that the payment
is delinquent.
   (2) If a depository fails to pay the fines or penalties assessed
by the administrator, the administrator may notify local agency
treasurers with deposits in the depository.
   (3) If an agent of depository fails to pay the fines or penalties
assessed by the administrator, the administrator may notify local
agency treasurers who have authorized the agent of depository as
provided in Sections 53649 and 53656, and may by order revoke the
authorization of the agent of depository as provided in subdivision
(i).
   (m) The amendments to this section enacted by the Legislature
during the 1999-2000 Regular Session shall become operative on
January 1, 2001.
  SEC. 22.  Section 51451 of the Health and Safety Code is amended to
read:
   51451.  The Homebuyer Down Payment Assistance Program and the
Rental Assistance Program are hereby established to provide
assistance in the amount of the applicable school facility fee on
affordable housing developments.
   (a) A Homebuyer Down Payment Assistance Program shall provide the
following assistance:
   (1) Downpayment assistance to the purchaser of newly constructed
residential structures in a development project in economically
distressed areas in the aggregate amount of school facility fees paid
pursuant to one or both of Sections 65995.5 and 65995.7 of the
Government Code, less the amount that would be required pursuant to
subdivision (b) of Section 65995 of the Government Code
notwithstanding Sections 65995.5 and 65995.7 of the Government Code,
if all of the following conditions are met:
   (A) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
   (B) Five hundred or more residential structures have been
constructed in the county during 1997.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (E) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years.
   (2) Downpayment assistance to the purchaser of any newly
constructed residential structure in the development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of Sections 65995, 65995.5, and 65995.7 of the
Government Code, less the amount that would be required pursuant to
subdivision (b) of Section 65995 of the Government Code
notwithstanding Sections 65995.5 and 65995.7 of the Government Code,
if all of the following conditions are met:
   (A) The development project is located in the state.
   (B) The sales price of the eligible residential structure in the
development project does not exceed one hundred thirty thousand
dollars ($130,000) unless the median sales price for California as
reported by the Construction Industry Research Board for new homes
sold indicates that the median sales price has increased.  That sales
price limit shall be increased or decreased each successive year by
the agency according to the percentage change in the median sales
price for new homes sold from the previous year as reported by the
Construction Industry Research Board.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (3) Downpayment to the purchaser of any newly constructed
residential structure in a development project in the aggregate
amount of school facility fees paid pursuant to one, all, or any
combination of subdivision (b) of Section 65995 and Sections 65995.5
and 65995.7 of the Government Code for the eligible residential
structure if all of the following conditions are met:
   (A) The assistance is provided to a qualified first-time homebuyer
pursuant to Section 50068.5.
   (B) The qualified first-time homebuyer meets the moderate income
requirements set forth in  Section 50093.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (b) A Rental Assistance Program shall provide assistance to the
housing sponsor of a housing development in the aggregate amount of
the school facility fees paid pursuant to one, all, or any
combination of subdivision (b) of Section 65995 and Sections 65995.5
and Section 65995.7 of the Government Code that meets all of the
following conditions:
   (1) The units are deed restricted to very low income households
and are continuously available to or occupied by very low income
households at rents that do not exceed those prescribed by Section
50053, except that for the purposes of this subdivision, very low
income shall be defined as 30 percent times 30 percent of the median
income adjusted for family size appropriate for the unit.
   (2) The number of dedicated residential units must equal or exceed
the number of units supported by the reimbursed school impact fees
determined by the average per unit development cost.
   (3) The dedicated residential units are regulated by an
appropriate local or state agency for a minimum of 30 years.
   (4) A building permit for an eligible residential unit in the
development project is issued by the local agency on or after January
1, 1999.
  SEC. 23.  Section 51452 of the Health and Safety Code is amended to
read:
   51452.  (a) The School Facilities Fee Assistance Fund is hereby
established in the State Treasury and, notwithstanding Section 13340
of the Government Code, all money in the fund is continuously
appropriated to the Department of General Services for the purposes
of this chapter.  All repayments of disbursed funds pursuant to this
chapter or any interest earned from the investment in the Surplus
Money Investment Fund or any other moneys accruing to the fund from
whatever source shall be returned to the fund and is available for
allocation by the California Housing Finance Agency to programs
established pursuant to this chapter.
   (b) The following amounts are hereby appropriated from the General
Fund to the School Facilities Fee Assistance Fund for administrative
costs and to make payments to purchasers of newly constructed
residential structures and housing sponsors of housing developments
pursuant to this chapter from that fund by fiscal year as follows:
   (1) Twenty million dollars ($20,000,000) in the 1998-99 fiscal
year.
   (2) Forty million dollars ($40,000,000) in the 1999-2000 fiscal
year.
   (3) Forty million dollars ($40,000,000) in the 2000-01 fiscal
year.
   (4) Forty million dollars ($40,000,000) in the 2001-02 fiscal
year.
   (5) Twenty million dollars ($20,000,000) in the 2002-03 fiscal
year, through December 31, 2002.
   (c) The funds shall be distributed by fiscal year to each program
in proportion to the total amounts available for each program as
follows:
   (1) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (1) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months
of their appropriation and availability may also be available for
programs set forth in paragraphs (2) and (3) of subdivision (a) of
Section 51451.
   (2) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (2) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months of
their appropriation and availability may also be available for the
program set forth in paragraph (3) of subdivision (a) of Section
51451.
   (3) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in paragraph (3) of subdivision (a) of Section
51451.
   (4) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in subdivision (b) of Section 51451.
  SEC. 24.  Section 2675.5 of the Labor Code is amended to read:
   2675.5.  (a) The commissioner shall deposit seventy-five dollars
($75) of each registrant's annual registration fee, required pursuant
to paragraph (5) of subdivision (a) of Section 2675, into one
separate account.  Funds from the separate account shall be disbursed
by the commissioner only to persons determined by the commissioner
to have been damaged by the failure to pay wages and benefits by any
garment manufacturer, jobber, contractor, or subcontractor after
exhausting a bond, if any, to ensure the payment of wages and
benefits.  Any disbursed funds subsequently recovered by the
commissioner shall be returned to the separate account.
   (b) The remainder of each registrant's annual registration fee not
deposited into the special account pursuant to subdivision (a) shall
be deposited in a subaccount and applied to costs incurred by the
commissioner in administering the provisions of Section 2673.1,
Section 2675, and this section, upon appropriation by the
Legislature.
  SEC. 25.  Section 3099.5 is added to the Labor Code, to read:
   3099.5.  (a) The Electrician Certification Fund is hereby created
as a special account in the State Treasury.  Proceeds of the fund may
be expended by the department, upon appropriation by the
Legislature, for the costs of the Division of Apprenticeship
Standards program to validate and certify electricians as provided by
Section 3099, and shall not be used for any other purpose.
   (b) The fund shall consist of the fees collected pursuant to
Section 3099.
  SEC. 26.  Section 7929.5 is added to the Labor Code, to read:
   7929.5.  (a) The Permanent Amusement Ride Inspection Fund is
hereby created as a special account in the State Treasury.  Proceeds
of the fund may be expended by the Department of Industrial
Relations, upon appropriation by the Legislature, for the costs of
the Permanent Amusement Ride Inspection Program established pursuant
to Part 8.1 (commencing with Section 7920) of Division 5 of the Labor
Code, and shall not be used for any other purpose.
   (b) The fund shall consist of the fees collected pursuant to
Section 7929.
  SEC. 27.  Section 531 is added to the Military and Veterans Code,
to read:
   531.  The Adjutant General may enter into a cooperative agreement
with the City of Oakland and a school district for the purposes of
establishing an Oakland Military Institute.  The program will be a
nonresidential military institute that would provide a structured,
disciplined environment that would be conducive to learning in a
college preparatory environment.  In addition to academic skills,
students would develop leadership, self-esteem, and a strong sense of
community.
  SEC. 28.  Section 3006 is added to the Penal Code, to read:
   3006.  (a) The Department of Corrections may require parolees
participating in relapse prevention treatment programs or receiving
medication treatments intended to prevent them from committing sex
offenses to pay some or all of the costs associated with this
treatment, subject to the person's ability to pay.
   (b) For the purposes of this section, "ability to pay" means the
overall capability of the person to reimburse the costs, or a portion
of the costs, of providing sex offender treatment, and shall
include, but shall not be limited to, consideration of all of the
following factors:
   (1) Present financial position.
   (2) Reasonably discernible future financial position.
   (3) Likelihood that the person shall be able to obtain employment
after the date of parole.
   (4) Any other factor or factors which may bear upon the person's
financial capability to reimburse the department for the costs.
  SEC. 29.  Section 5024 is added to the Penal Code, to read:
   5024.  (a) The Legislature finds and declares that:
   (1) State costs for purchasing drugs and medical supplies for the
health care of offenders in state custody have grown rapidly in
recent years and will amount to almost seventy-five million dollars
($75,000,000) annually in the 1999-2000 fiscal year.
   (2) The Bureau of State Audits found in a January 2000 audit
report that the state could save millions of dollars annually by
improving its current processes for the procurement of drugs for
inmate health care and by pursuing alternative procurement methods.
   (3) It is the intent of the Legislature that the Department of
Corrections, in cooperation with the Department of General Services
and other appropriate state agencies, take prompt action to adopt
cost-effective reforms in its drug and medical supply procurement
processes by establishing a program to obtain rebates from drug
manufacturers, implementing alternative contracting and procurement
reforms, or by some combination of these steps.
   (b) (1) The Director of the Department of Corrections, pursuant to
the Administrative Procedure Act, Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, may adopt regulations requiring
                   manufacturers of drugs to pay the department a
rebate for the purchase of drugs for offenders in state custody that
is at least equal to the rebate that would be applicable to the drug
under Section 1927(c) of the federal Social Security Act (42 U.S.C.
Sec. 1396r-8(c)).  Any such regulation shall, at a minimum, specify
the procedures for notifying drug manufacturers of the rebate
requirements and for collecting rebate payments.
   (2) If a rebate program is implemented, the director shall
develop, maintain, and update as necessary a list of drugs to be
provided under the rebate program, and establish a rate structure for
reimbursement of each drug included in the rebate program.  Rates
shall not be less than the actual cost of the drug.  However, the
director may purchase a listed drug directly from the manufacturer
and negotiate the most favorable bulk price for that drug.  In order
to minimize state administrative costs and maximize state benefits
for the rebate program, the director may establish a program that
focuses upon obtaining rebates for those drugs that it determines are
purchased by the department in relatively large volumes.
   (3) If a rebate program is implemented, the department shall
submit an invoice, not less than two times per year, to each
manufacturer for the amount of the rebate required by this
subdivision.  Drugs may be removed from the list for failure to pay
the rebate required by this subdivision, unless the department
determines that purchase of the drug is a medical necessity or that
purchase of the drug is necessary to comply with a court order to
ensure the appropriate provision of quality health care to offenders
in state custody.
   (4) In order to minimize state administrative costs and maximize
state benefits for such a rebate program, if one is implemented, the
Department of Corrections may enter into interagency agreements with
the Department of General Services, the State Department of Health
Services, the State Department of Mental Health, or the State
Department of Developmental Services, the University of California,
another appropriate state department, or with more than one of those
entities, for joint participation in a rebate program, collection and
monitoring of necessary drug price and rebate data, the billing of
manufacturers for rebates, the resolution of any disputes over
rebates, and any other services necessary for the cost-effective
operation of the rebate program.
   (5) The Department of Corrections, separately or in cooperation
with other state agencies, may contract for the services of a
pharmaceutical benefits manager for any services necessary for the
cost-effective operation of the rebate program, if one is
implemented, or for other services to improve the contracting and
procurement of drugs and medical supplies for inmate health care.
   (c) Nothing in this section shall prohibit the department, as an
alternative to or in addition to establishing a rebate program for
drugs for inmate health care, from implementing, in cooperation with
the Department of General Services and other appropriate state
agencies, other cost-effective strategies for procurement of drugs
and medical supplies for offenders in state custody, including, but
not limited to:
   (1) Improvements in the existing statewide master agreement
procedures for purchasing contract and noncontract drugs at a
discount from drug manufacturers.
   (2) Participation by offenders in state custody infected with
human immunodeficiency virus (HIV), the etiologic agent of acquired
immune deficiency syndrome (AIDS), in the AIDS Drug Assistance
Program.
   (3) Membership in the Minnesota Multistate Contracting Alliance
for Pharmacy (MMCAP) or other cooperative purchasing arrangements
with other governmental entities.
   (4) Greater centralization or standardization of procurement of
drugs and medical supplies among individual prisons in the Department
of Corrections prison system.
   (d) The Bureau of State Audits shall report to the Legislature and
the Governor by January 10, 2002, its findings in regard to:
   (1) An evaluation of the trends in state costs for the procurement
of drugs and medical supplies for offenders in state custody, and an
assessment of the major factors affecting those trends.
   (2) A summary of the steps taken by the Department of Corrections,
the Department of General Services, and other appropriate state
agencies to implement this section.
   (3) An evaluation of the compliance by these state agencies with
the findings and recommendations of the January 2000 Bureau of State
Audits report for reform of procurement of drugs and medical supplies
for offenders in state custody.
   (4) Any further recommendations of the Bureau of State Audits for
reform of state drug procurement practices, policies, or statutes.
  SEC. 30.  Section 10299 is added to the Public Contract Code, to
read:
   10299.  (a) Notwithstanding any other provision of law, the
director may consolidate the needs of multiple state agencies for
information technology goods and services, and, pursuant to the
procedures established in Chapter 3 (commencing with Section 12100),
establish contracts, master agreements, multiple award schedules,
cooperative agreements, including agreements with entities outside
the state, and other types of agreements that leverage the state's
buying power, for acquisitions authorized under Chapter 2 (commencing
with Section 10290), Chapter 3 (commencing with Section 12100), and
Chapter 3.6 (commencing with Section 12125).  State agencies and
local agencies may contract with suppliers awarded the contracts
without further competitive bidding.
   (b) The director may make the services of the department
available, upon the terms and conditions agreed upon, to any school
district empowered to expend public funds.  These school districts
may, without further competitive bidding, utilize contracts, master
agreements, multiple award schedules, cooperative agreements, or
other types of agreements established by the department for use by
school districts for the acquisition of information technology,
goods, and services.  The state shall incur no financial
responsibility in connection with the contracting of local agencies
under this section.
  SEC. 31.  Section 355.1 is added to the Public Utilities Code, to
read:
   355.1.  The commission may investigate issues associated with
multiple qualified exchanges.  If the commission determines that
allowing electrical corporations to purchase from multiple qualified
exchanges is in the public interest, the commission shall prepare and
submit findings and recommendations to the Legislature on or before
June 1, 2001.  Prior to June 1, 2001, the commission may not
implement the part of any decision authorizing electrical
corporations to purchase from exchanges other than the Power
Exchange.  That portion of any decision of the commission adopted
prior to January 1, 2001, but after June 1, 2000, authorizing
electrical corporations to purchase from multiple qualified
exchanges, may not be implemented.
  SEC. 32.  Section 140.3 is added to the Streets and Highways Code,
to read:
   140.3.  (a) For the purposes of this section, the following terms
have the following meanings:
   (1) (A) "Mobile equipment" means devices owned by the department
by which any person or property may be propelled, moved, or drawn on
or off highway and that are used for employee transportation or
material movement, or for construction or maintenance work relating
to transportation, including, but not limited to, passenger vehicles,
heavy duty trucks, boats, trailers, motorized construction
equipment, and "slip-in" accessories or attachments that are used by
more than one functional unit.
   (B) "Mobile equipment" does not include any of the following:
   (i) Office equipment, computers, and any other stationary,
nonmovable, and integral part of a transportation facility.
   (ii) Passenger vehicles used to transport the public.
   (iii) Aircraft or related aeronautics equipment.
   (iv) Rolling stock used for intercity rail operations.
   (2) "Mobile equipment services" includes, but is not limited to,
all of the following:
   (A) Use of mobile equipment and services, including, but not
limited to, the purchase of new vehicles.
   (B) Receiving, servicing, and equipping new mobile equipment
units.
   (C) Assembling components into completed mobile equipment units.
   (D) Managing mobile equipment and services, including, but not
limited to, payment for fuel and insurance.
   (E) Repairing, rehabilitating, and maintaining mobile equipment.
   (F) Disposing of used vehicles.
   (3) "Mobile equipment services cost recovery" means revenues from
assessments charged to the department's divisions and programs for
mobile equipment services, or revenues from charges for equipment
services provided to local transportation authorities, including, but
not limited to, cost recovery for all of the following:
   (A) Salaries and wages.
   (B) Facility and inventory improvements.
   (C) Capital outlay support projects.
   (D) Overhead, depreciation, and operating expenses.
   (b) The department, with the approval of the Department of
Finance, shall set rates for mobile equipment services.  The
department shall review its rates on an annual basis and, upon
approval by the Department of Finance, shall publish a rate schedule
on or before April 30 of each year.  The department shall collect
mobile equipment services cost recovery.
   (c) The Equipment Service Fund is hereby created in the State
Treasury.  Notwithstanding Section 13340, all money in the fund is
continuously appropriated to the department to pay for mobile
equipment services.
   (d) The net proceeds from mobile equipment services cost recovery
shall be deposited in the fund.  In addition, any moneys appropriated
to the department under the annual Budget Act, or under any other
act, for the use of existing mobile equipment or for the purchase of
that equipment, and any moneys transferred to the department from any
account within the State Transportation Fund for those purposes, may
be deposited in the fund.
   (e) If the unencumbered balance remaining in the fund at the end
of any fiscal year is more than 25 percent of the total annual
appropriation made to the fund under the most recent Budget Act, as
determined by the department and the Department of Finance, the
unencumbered balance, less an amount equal to the amount required to
provide mobile equipment services for 60 days, shall be refunded to
all programs that were assessed mobile equipment service charges
during that fiscal year.
  SEC. 33.  (a) The Department of General Services (DGS) shall commit
itself to achieve improved levels of performance, as specified in
this section, by focusing its efforts on enhancing the value of the
services it delivers.
   (b) Pursuant to its strategic plan, DGS committed itself to
providing the following two categories of services by July 1, 1998:
(1) services that the Legislature or Governor requires state agencies
to purchase from DGS, and (2) services that state agencies are not
required to purchase from DGS, but that DGS can provide on a
cost-competitive basis.
   (c) Notwithstanding any other provision of law, the Director of
General Services or his or her designee, in lieu of the Director of
Finance, may approve DGS Form 22 and DGS Form 220, including the
extension of time to expend transferred funds, the transfer of funds
from one work order to another, and the Return of Funds Document.
   (d) Notwithstanding Chapter 3 (commencing with Section 13940) of
Part 4 of Division 3 of Title 2 of the Government Code, the Director
of General Services or his or her designee may approve "relief from
accountability" for debts owed to DGS up to five thousand dollars
($5,000) when DGS determines it cannot collect the debts or when the
cost of collection exceeds the amount of the debt.
   (e) Notwithstanding Section 2807 of the Penal Code, the Director
of General Services or his or her designee may procure goods from the
private sector even though the goods may be available from the
Prison Industry Authority, when in his or her discretion, it is
cost-beneficial to do so and if the director or his or her designee
continues to include the authority in soliciting quotations for
goods.
   (f) Notwithstanding subdivision (a) of Section 948 and Section 965
of the Government Code, the Director of General Services or his or
her designee, in lieu of the Director of Finance, may certify funds
for payment of all legal settlements and tort claims for which DGS
already has sufficient expenditure authority and funds without the
need for augmentation.
   (g) Notwithstanding Chapter 7 (commencing with Section 14850) of
Part 5.5 of Division 3 of Title 2 of, or Section 14901 of, the
Government Code, no agency is required to use the Office of State
Printing for its printing needs and the Office of State Printing may
offer printing services to both state and other public agencies,
including cities, counties, special districts, community college
districts, the California State University, the University of
California, and agencies of the United States government.
   (h) Notwithstanding Section 14851 of the Government Code, the
Office of State Printing may accept paid advertisements in state
publications or in publications promoting an Office of State Printing
supported project or program, except that the Office of State
Printing may not accept or publish any paid political advertising.
   (i) Notwithstanding Section 965.2 of the Government Code, the
Director of General Services or his or her designee, in lieu of the
Director of Finance, may certify funds for payment of all legal court
settlements for projects funded from the Architecture Revolving
Fund, if a sufficient fund balance exists in the work order to pay
the claim and the payment does not require a budget augmentation to
complete the project.
   (j) Notwithstanding Section 14957 of the Government Code, the
Director of General Services or his or her designee, in lieu of the
Director of Finance, may approve the deposit of checks directly into
the Architecture Revolving Fund.  DGS shall notify the Department of
Finance within 30 days of the date DGS makes such a deposit.
   (k) This section shall remain in effect only until the effective
date of the Budget Act of 2001 or June 30, 2001, whichever occurs
first.
  SEC. 34.  (a) The Department of Veterans Affairs shall renovate the
Lincoln Theater at the Yountville Veterans' Home.  The renovation
shall be managed by the Department of General Services.  The
Department of General Services shall consult with the Friends of the
Lincoln Theater as to any portion of the renovation that is paid for
by funds provided by that organization.
   (b) The scope of this project includes the renovation of
approximately 13,150 gross square feet and the addition of
approximately 30,150 gross square feet to the Lincoln Theater.  The
project will modernize and upgrade performing areas of the theater
including new lighting, acoustical equipment, a mechanical lift, and
an enlarged stage apron.  Audience amenities include contouring of
the theater floor to improve sightlines, refurbishing existing
seating, and installation of new seating, acoustical treatment, and
the addition of a balcony with elevator.  The existing lobby will be
demolished and replaced with an enlarged lobby/gallery and a new
patio at the theater entrance.  New operational support rooms as well
as restrooms will be constructed on the north side of the existing
building and new heating, ventilation, and air-conditioning will be
installed throughout.  The existing building will be seismically
strengthened.  Site improvements include the addition of an entry
patio, landscape enhancements with tree plantings, shrubs, and ground
covers.
   (c) The General Fund may not be used to augment either the seismic
or reimbursement-funded portions of this project.  Any project cost
increases beyond the authority provided in Section 13332.11 of the
Government Code shall come from nonstate funds with no additional
appropriations from the General Fund.
  SEC. 35.  (a) The Department of Transportation, in consultation
with the Office of Planning and Research, shall conduct a statewide
rail transportation assessment.  This rail transportation assessment
shall be conducted in cooperation with regional and local
transportation agencies, as well as private freight railroads, and
shall incorporate both a passenger portion and a freight rail systems
portion.  The passenger rail portion of the study shall include
intercity, commuter, and urban rail systems.  The study shall include
a report that does all of the following:
   (1) Examines how the different modes of rail transportation
interconnect with each other and with other forms of transportation.
The study shall investigate where there are gaps in connectivity
between passenger rail systems.  The report shall also make
recommendations for improving connectivity for passenger and freight
rail.
   (2) Identifies where there are currently high levels of freight
and passenger rail track congestion, as well as where agencies
project future rail congestion problems.  The report shall also make
recommendations for capital projects that would alleviate or prevent
the onset of track congestion.
   (3) Reports on plans for capital projects for each rail
transportation agency, both public and private, over the next 10
years.  Capital projects include improvements that enhance public
safety, including, but not limited to, grade crossing separations,
increase track capacity, including, but not limited to, passing
tracks or sidings, and increase passenger services, including, but
not limited to, additional passenger cars and locomotives.  The
report shall also identify where plans for capital improvements or
services by one rail agency will conflict with plans for capital
improvements or service with another rail agency.
   (4) Examines the cost effectiveness of current funding for rail
projects.
   (b) Based on the findings from the issues listed in subdivision
(a), the report shall estimate and document statewide unfunded
capital and operating needs over the next 10 years for each
respective agency.
   (c) The department shall submit the report to the Legislature on
or before January 1, 2002.
  SEC. 36.  Due to unique facts and circumstances applicable to the
University of California, San Francisco and the San Francisco General
Hospital, the Legislature finds and declares that a general statute
cannot be made applicable within the meaning of Section 16 of Article
IV of the California Constitution.  The special legislation
contained in Section 10 of this act is, therefore, necessarily
applicable to only the University of California, San Francisco and
the San Francisco General Hospital.
  SEC. 37.  Funding for the implementation of Section 1 of this act
shall be pursuant to an appropriation of funds for such purposes in
the annual Budget Act.
  SEC. 38.  (a) The sum of one million three hundred thousand dollars
($1,300,000) is hereby appropriated from the General Fund, in
augmentation of Item 8940-001-0001 of Section 2.00 of the Budget Act
of 2000, to fund the costs of the Military Department in the
operation of the program established pursuant to Section 531 of the
Military and Veterans Code, as added by Section 27 of this act, in
the 2000-01 fiscal year.  The amount appropriated herein shall only
be available to the extent that it is matched on a dollar-for-dollar
basis.
   (b) General Fund revenues appropriated for school districts, as
defined in subdivision (c) of Section 41202 of the Education Code,
pursuant to Section 8 of Article XVI of the California Constitution
and the total allocations to school districts and community colleges
from General Fund proceeds of taxes appropriated pursuant to Article
XII B, as defined in subdivision (e) of Section 41202 of the
Education Code, shall not be used as a match for funds appropriated
herein.
  SEC. 39.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
  SEC. 40.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to make the statutory changes to implement the Budget Act
of 2000 at the earliest possible time, it is necessary that this act
take effect immediately.
